Thursday, September 29

Can Solana Bullish Investors Stop Correction?

Bitcoin is the undisputed leader in the cryptocurrency universe and the rest of altcoins they follow their rhythm, even downward. After the fall of the aforementioned below $ 50,000, the rest of cryptocurrencies suffered falls such as Solana which broke the $ 190 lower. Can Solana bulls stop the correction ahead of support at $ 168? Ask Akashnath en Ambcrypto.

Price formed a rising wedge pattern (white) and broke below the $ 195 zone (red box) which had been a strong supply area recently. Solana seemed to have turned it around on demand, but in no time the vendors made their presence felt.

Using the swing high and low at $ 259.9 and $ 148, the 23.6% Fib retracement level at $ 174 can be considered the next support level. Just below is the $ 168 demand zone (cyan box) where liquidity is likely to be strong. $ 167 is also a higher time period support level.

The price is looking for liquidity and it would take some time to assess the reaction in the $ 168-174 area. If long, low wicks were to be seen alongside good trading volume, it would be a sign of strength from the bulls.

While we want to see a good reaction from the bulls, the last few days have not been dominated by Solana buyers. The OBV showed two tiers that have been recently set but have not been broken yet. Despite the price making a series of higher short-term highs (wedge pattern), the OBV disagreed as it did not set new higher highs.

This is something that should change. Strong selling pressure in early December appeared to have stopped at OBV, but demand remains to be seen.

The impressive oscillator dipped below the zero line to indicate a shift in momentum from bullish to bearish.

The next area of ​​value for traders is likely to be around the $ 170 zone. A fight between bears and bulls is expected in this area, with the winner likely to set the direction for the next few days. This means another push to $ 190 or a drop to $ 150.

Solana is trading at $ 172.

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